How it works
The cash flow is the list of money in and out by year. Write that list first.
- Keep one table, one rate, and one leftover list.
- Avoid three slides that repeat the same adjective.
- If you show a sample, label it as a sample.
- If you want them to try the workflow, ask after the story, not before.
Formula in words. Retell test: can they say fit, cash, flip risk, and leftovers in four short lines?
| Input | Meaning |
|---|---|
| Audience | Owner, CFO, or operator |
| One table | The cash |
| One test | The flip |
| Leftovers | The unknowns |
Worked example
Here is a teaching sample. It is not customer data and not a result from a live client.
Lease A start rent$39,800
Lease B start rent$37,014
Discount rate8%
Sample NPV A$363,504
| Metric | Lease A | Lease B |
|---|---|---|
| Start rent | $39,800 | $37,014 |
| Year-1 extras | $9,300 | $9,951 |
| Year-1 credit | $6,000 | $3,300 |
| Sample NPV | $363,504 | $350,000 |
| Year | Rent | Extras | Credit | Cash out | Value today |
|---|---|---|---|---|---|
| Year 1 | $39,800 | $9,300 | $6,000 | $43,100 | $39,907 |
| Year 2 | $40,914 | $9,579 | $0 | $50,493 | $43,290 |
| Year 3 | $42,060 | $9,866 | $0 | $51,926 | $41,221 |
| Year 4 | $43,238 | $10,162 | $0 | $53,400 | $39,251 |
| Year 5 | $44,448 | $10,467 | $0 | $54,915 | $37,374 |
| Year 6 | $45,781 | $10,781 | $0 | $56,562 | $35,644 |
| Year 7 | $47,154 | $11,104 | $0 | $58,258 | $33,993 |
| Year 8 | $48,569 | $11,437 | $0 | $60,006 | $32,419 |
| Year 9 | $50,026 | $11,780 | $0 | $61,806 | $30,918 |
| Year 10 | $51,527 | $12,133 | $0 | $63,660 | $29,487 |
| Sample NPV | — | — | — | — | $363,504 |
How to read the sample
Sample NPV for the spoken sample is about $363,504. A second path lands near $350,000. That gap is a talking point, not a promise.
Speak year one as cash, not as a slogan. If one path wins only because a credit sat in the wrong year, start over.
Year notes for the spoken sample
- Year 1 of the spoken sample has rent of $39,800.
- Shared building cost is $9,300.
- A credit of $6,000 lowers the cash you pay that year.
- Cash out this year is about $43,100. Speak year one as cash, not as a slogan.
- Later cash gets a shrink for time. At 8 percent, year 1 is worth about $39,907 today.
- Next, year 2 rent is $40,914.
- CAM, which is a shared building cost, is $9,579.
- There is no credit in this year.
- You pay about $50,493 this year after extras and credits. Call out extras when they stay in year two.
- Time shrinks later cash. At 8 percent, year 2 is worth about $43,290 today.
- Then year 3 rent is $42,060.
- Extras for the building come to $9,866.
- Credits skip this year.
- The net cash this year is about $51,926. Name the step when it appears in year three.
- Waiting has a price. At 8 percent, year 3 is worth about $41,221 today.
- After that, year 4 rent is $43,238.
- The shared building cost this time is $10,162.
- No extra credit shows up this year.
- Cash out this year is about $53,400. Keep the rate in the same breath in year four.
- Later cash gets a shrink for time. At 8 percent, year 4 is worth about $39,251 today.
- In year 5 of the spoken sample, rent is $44,448.
- Shared building cost is $10,467.
- There is no credit in this year.
- You pay about $54,915 this year after extras and credits. Close the leftover list on year five.
- Time shrinks later cash. At 8 percent, year 5 is worth about $37,374 today.
- Year 6 of the spoken sample has rent of $45,781.
- CAM, which is a shared building cost, is $10,781.
- Credits skip this year.
- The net cash this year is about $56,562. Keep this later year in the sum for the sample.
- Waiting has a price. At 8 percent, year 6 is worth about $35,644 today.
- Next, year 7 rent is $47,154.
- Extras for the building come to $11,104.
- No extra credit shows up this year.
- Cash out this year is about $58,258. The row still belongs in the sum for the long path.
- Later cash gets a shrink for time. At 8 percent, year 7 is worth about $33,993 today.
- Then year 8 rent is $48,569.
- The shared building cost this time is $11,437.
- There is no credit in this year.
- You pay about $60,006 this year after extras and credits. Keep this later year in the sum for the long path.
- Time shrinks later cash. At 8 percent, year 8 is worth about $32,419 today.
- After that, year 9 rent is $50,026.
- Shared building cost is $11,780.
- Credits skip this year.
- The net cash this year is about $61,806. The row still belongs in the sum for the long path.
- Waiting has a price. At 8 percent, year 9 is worth about $30,918 today.
- In year 10 of the spoken sample, rent is $51,527.
- CAM, which is a shared building cost, is $12,133.
- No extra credit shows up this year.
- Cash out this year is about $63,660. Keep this later year in the sum for the long path.
- Later cash gets a shrink for time. At 8 percent, year 10 is worth about $29,487 today.
Add those year values. The sample NPV for the spoken sample is about $363,504. This is a teaching sample, not a client result.
Trusted sources
These are public references. They are not endorsements and not client results.